Ask the HOA Expert

Written by Posted On Tuesday, 20 February 2007 16:00

Question: I run an HOA management company and have a new HOA client whose board does not want a representative from management to attend board meetings. What do you think?

Answer: The management company works for the board and if the board doesn't want the manager there, that's the way it is. But it's highly ill advised. The manager is hired to counsel the board about HOA operations. Since the manager is more involved in day to day issues, he knows things the board doesn't. If I were you, I would advise the board in writing of the benefits and the problems that will likely result by making decisions that do not include manager input. If the board persists, at least it has been warned of the likely consequences.

Question: Our condominiums were built in the 1970s. When units sell, the inspection report frequently indicates the need for extensive and expensive repairs to the common elements attached to the subject unit (siding, painting, decks, etc.) Since we have no reserves, each of these sales triggers a $2000-$5000 special assessment to take care of these repairs. Can we charge these costs to the unit seller?

Answer: Unless the repair cost was triggered by the unit owner's negligence, certain members (like sellers) cannot be singled out for special assessments.

But there is another issue to consider. Just because a lender says a common element needs to be fixed doesn't mean the HOA has to fix it right away. The board does have discretion when repairs take place. Usually a letter to the lender from the board stating that the repairs will be accomplished according to the board's scheduling suffices for the lender's file. Of course, if there is a safety issue, the repair should be taken care of as soon as possible.

An even bigger issue to consider is the lack of reserves. Since the board is responsible for long range planning, reacting to sales inspections is a poor way to do it. To properly plan, a "reserve study" is needed to analyze long range repairs and replacements and their costs. Reserve studies are usually projected over a 30 year time line to capture events like roof, fencing and deck replacement and other long-lived common elements. When the 30 year plan is adequately and regularly funded, special assessments are avoided and costs are fairly shared by all members along the 30 year time line. For more on this topic, see the Reserve Planning section at Regenesis.net .

Question: Our HOA wrestles with speeders on our community streets. Some members want speed bumps, some want stop signs. What alternatives are best?

Answer: Installing special traffic control is a highly sensitive issue and should be discussed in an open meeting with owners. Is this a general problem or are there relatively few offenders that can be identified and reined in? Have the police been called to do periodic speed control?

Speed bumps are an option if allowed by the local jurisdiction. In some cities, an extra deep and relatively low speed bump has been developed for what is labeled "traffic calming zones". This speed bump spans the width of the street and is 3-5 feet deep. The impact is noticeable but not as radical as traditional speed bumps. They are installed in series every several hundred feet to keep traffic at or below 25 mph. Traffic circles can be installed at intersections to slow traffic. Why not inquire with your local jurisdiction's street department for traffic slowing options?

Question: Our board has adopted additional rules and regulations. Doesn't this require a vote of the members to amend the governing documents?

Answer: Governing documents in their original form are often generally worded to allow customization. Typically, issues concerning pets, parking and money collection need "fleshing out" to work properly. The board generally has the authority to promulgate rules and regulations that are in keeping with the governing documents.

The board, however, cannot enact a rule that contradicts specific rules or policies in the governing documents. And even though the board has authority to make rules, those proposed rules should be reviewed for comment by the members prior to enactment to achieve "buy-in."

For more Ask the HOA Expert, see Regenesis.net .

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